Bitcoin mixer and tumbler - page 2. | Bitcointalksearch.org

cellard

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Quote from: Slark on August 13, 2017, 10:24:02 AM

We might never learn the whole truth about Bitmixer, after all mixers and their owners are not the most transparent services in the bitcoin ecosystem.
I heard that Bitmixer was intimidated by authorities and this is the reason behind their sudden disappearance.

As far as I know, everyone that runs mixing services is anonymous and probably always uses Tor/VPN to access the network.

What I don't understand is, how do you sell your gains?

Let's say you run a mixing service, and become a millonaire. You want to buy real state with your BTC, a nice house, and you need to sell and tax it. When they ask about what the origins of these BTCs are, what would one say? "I run a mixing service". Wouldn't that put you in trouble?
Or maybe this is still a grey area, and this is why Bitmixer guy disappeared, he will sell/has sold his BTC before it becomes illegal.

Quote from: Slark on August 13, 2017, 10:24:02 AM

Mixing your coins is not always related to illegal activities.
What about a situation when someone is extremely paranoid about his privacy and want to keep all bitcoin transaction to himself?

Sure, but I don't think the authorities would care that you didn't do anything illegal. If you mix coins, and the coins you receive are being tracked by authorities, you now own these coins. If you go and sell these coins for fiat, they will see that you owned these coins, now these coins are linked to your real life identity and now you are in trouble... see what I mean?

That is why im worried about the BTC that I mixed to test around, im not sure if I should ever sell that..

Iranus

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Trying to track coins that have gone through mixing services is classic police work. If you go through a "classic" Bitcoin mixer like the defunct Bitmixer, you would deposit coins and they would pay you different coins that were deposited to them earlier.

Authorities would have to try and deduce some addresses which belong to the mixing service, and separate the different coins being mixed by amount (0.112 BTC is deposited to Bitmixer, the same amount minus fees comes out to a different address). Blockchain analysis tools aren't too bad at stuff like this.

It's equally difficult to track large amounts to small amounts, it's only about how well the owner of those coins has protected their privacy.

In the case of Chipmixer, you receive entirely new wallets (Electrum wallets) instead of just new coins, and the wallets have fixed amounts of funds already inside of them which are different amounts to the amount you deposited. Many mixing services try a variety of methods to get rid of the blockchain link to your coins.

Slark

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Quote from: cellard on August 13, 2017, 09:45:34 AM

Yeah the bitmixer incident was extremely strange. They were one of the leading mixers making millions from mixing fees. The signature campaign was one of the oldest ones, and they always paid like clockwork, so it shows the advertisements in here work, they got their brand everywhere, and they were able to afford it.

We might never learn the whole truth about Bitmixer, after all mixers and their owners are not the most transparent services in the bitcoin ecosystem.
I heard that Bitmixer was intimidated by authorities and this is the reason behind their sudden disappearance.

Quote from: cellard on August 13, 2017, 09:45:34 AM

Anyway, I still don't recommend using any mixers and I don't recommend doing anything illegal. Now im worried about the BTC that mixed to test things out if I want to sell these.
If I sell and they ask me about the origin, they would see on the blockchain that they got mixed under a ton of other addresses.

Mixing your coins is not always related to illegal activities.
What about a situation when someone is extremely paranoid about his privacy and want to keep all bitcoin transaction to himself?

cellard

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Quote from: pinkflower on August 13, 2017, 12:59:12 AM

Quote from: cellard on August 12, 2017, 06:28:30 PM

Quote from: bitcoinuserszz on August 12, 2017, 05:57:58 PM

Hi. Im curious about bitcoin and how it works. If a person sends around 1 BTC in a tumbler, is it easy to track the transaction? I mean, how much people do not send around just 1 BTC every hour. Is it easy to track smaller transactions? Or easier to track larger transactions? Lets say that 10,000 people send around around 1 BTC per hour. How would these trace tools know which BTC transaction belongs to who?

It's really hard to track coins after they get tumbled, but the point of failure in this model is in the fact that mixers are centralized. You are basically trusting that the hosts of the mixer don't reveal the logs to anyone looking for your coins.

Theres also a chance that the mixers are now operated by law enforcement. After the darknet markets flourished, the government had to fight back by setting up honey pot services or they themselves have to compromise services that are being used by darknet participants.

Bitmixer might have been compromised, thats why the owner posted that weird message and left.

Yeah the bitmixer incident was extremely strange. They were one of the leading mixers making millions from mixing fees. The signature campaign was one of the oldest ones, and they always paid like clockwork, so it shows the advertisements in here work, they got their brand everywhere, and they were able to afford it.

I don't believe for a second that he woke up one random day and decided that it was over because of moral reasons.

Anyway, I still don't recommend using any mixers and I don't recommend doing anything illegal. Now im worried about the BTC that mixed to test things out if I want to sell these.
If I sell and they ask me about the origin, they would see on the blockchain that they got mixed under a ton of other addresses.

Fungibility is an huge problem with BTC.. I hate having to keep track of tx addresses.

marky89

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Quote from: pinkflower on August 13, 2017, 12:59:12 AM

Theres also a chance that the mixers are now operated by law enforcement. After the darknet markets flourished, the government had to fight back by setting up honey pot services or they themselves have to compromise services that are being used by darknet participants.

Bitmixer might have been compromised, thats why the owner posted that weird message and left.

Sure, that's believable. I never really thought about that, since the obvious choice for law enforcement is to operate a darknet market as a honeypot (like Hansa)--lots of data given away there even with the best operational security by vendors. But a mixing service would be useful, too, for catching the low-hanging fruit. For proper security, it would make sense for mixing to be only one step in a multi-step process (perhaps also using non-KYC services through TOR/VPN).

Doesn't really explain why the owner left the way they did, but you raise a good point...

Yuuto

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Quote from: bitcoinuserszz on August 12, 2017, 05:57:58 PM

Hi. Im curious about bitcoin and how it works. If a person sends around 1 BTC in a tumbler, is it easy to track the transaction? I mean, how much people do not send around just 1 BTC every hour. Is it easy to track smaller transactions? Or easier to track larger transactions? Lets say that 10,000 people send around around 1 BTC per hour. How would these trace tools know which BTC transaction belongs to who?

Okay to answer your questions:

1. The transaction itself to the tumbler is completely public and can be viewed from any computer across the world as long as they have internet access. But once the bitcoin gets tumbled a completely unrelated output gets sent to the destination address(or in chipmixer's case, a pre-generated "chip" or private key is given to the user), and is extremely hard to trace who exactly sent it.

2. It is definitely easier to track larger transactions, they get noticed by everyone because of the sheer volume.

3. By trace tools you mean services such as walletexplorer? If you mean that, then how they work is essentially they scan an address's transaction history and see if there are any joint inputs. If there are, then it can be deduced that the two addresses belong to the same person.

pinkflower

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Quote from: cellard on August 12, 2017, 06:28:30 PM

Quote from: bitcoinuserszz on August 12, 2017, 05:57:58 PM

Hi. Im curious about bitcoin and how it works. If a person sends around 1 BTC in a tumbler, is it easy to track the transaction? I mean, how much people do not send around just 1 BTC every hour. Is it easy to track smaller transactions? Or easier to track larger transactions? Lets say that 10,000 people send around around 1 BTC per hour. How would these trace tools know which BTC transaction belongs to who?

It's really hard to track coins after they get tumbled, but the point of failure in this model is in the fact that mixers are centralized. You are basically trusting that the hosts of the mixer don't reveal the logs to anyone looking for your coins.

Theres also a chance that the mixers are now operated by law enforcement. After the darknet markets flourished, the government had to fight back by setting up honey pot services or they themselves have to compromise services that are being used by darknet participants.

Bitmixer might have been compromised, thats why the owner posted that weird message and left.

marky89

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Quote from: warningsigns on August 12, 2017, 07:05:27 PM

Today's best mixing service is in my signature below.

Your input BTC are not linked to your output BTC. Outputs are paid in private key format which makes it easy for you to incorporate them into any wallet of your choice.

Given that TumbleBit is an anonymous protocol that is fully compatible with today's Bitcoin protocol, I wonder why it hasn't taken off yet. Was I mistaken, and it required Segwit or something? I've been wondering how TumbleBit will measure up vs. centralized mixers, in terms of liquidity for mixing, reliability, and usability. It seems like bitcoin mixers are active as ever, though, in the wake of Bitmixer shutting down.

warningsigns

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Today's best mixing service is in my signature below.

Your input BTC are not linked to your output BTC. Outputs are paid in private key format which makes it easy for you to incorporate them into any wallet of your choice.

Tracking the transaction ends in the input address itself. If you send 1 BTC you do not get 1 whole BTC chip in return. The output bitcoins are divided into "chips" which you can withdraw to wallets in time increments (say, 1 chip now and 2 chips a few hours later and the rest of the chips tomorrow or next week). This makes tracing and linking of transactions very challenging, if not even impossible.

crairezx20

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Quote from: bitcoinuserszz on August 12, 2017, 05:57:58 PM

Hi. Im curious about bitcoin and how it works. If a person sends around 1 BTC in a tumbler, is it easy to track the transaction? I mean, how much people do not send around just 1 BTC every hour. Is it easy to track smaller transactions? Or easier to track larger transactions? Lets say that 10,000 people send around around 1 BTC per hour. How would these trace tools know which BTC transaction belongs to who?

Never heard that there are some trace tools out there except manually tracing the bitcoin transaction using the blockchain explorer.
Since you are using a mixer like you said its not traceable because they already had reserve bitcoin that they can send you with clean coin..
That is why there are few mixer out there are good to use if you are using illegal. or you don't want to trace your transactions. .

cellard

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Quote from: bitcoinuserszz on August 12, 2017, 05:57:58 PM

Hi. Im curious about bitcoin and how it works. If a person sends around 1 BTC in a tumbler, is it easy to track the transaction? I mean, how much people do not send around just 1 BTC every hour. Is it easy to track smaller transactions? Or easier to track larger transactions? Lets say that 10,000 people send around around 1 BTC per hour. How would these trace tools know which BTC transaction belongs to who?

It's really hard to track coins after they get tumbled, but the point of failure in this model is in the fact that mixers are centralized. You are basically trusting that the hosts of the mixer don't reveal the logs to anyone looking for your coins.

I did once an experiment just to learn how mixers work. I think helix is the best mixer, they have Tor and they got several options.

I also don't really recommend it. I would never do anything illegal so I don't want to end up with coins that are tainted as illegal when you mix the coins. You never know what coins you are getting after the mixing... who knows if these got tainted as illegal by some police somewhere, then you try to cash the money out and you get in trouble?

This also showcases the problem of lack of fungibility in Bitcoin btw.

mk4

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See, the point of bitcoin mixers/tumblers is to "tumble" your coins so you can move your bitcoins to another wallet with it being untracable or atleast significantly difficult to trace. Transaction size isn't a indicator of a transaction's traceability. Can you expound your last question? Not sure if I understood it correctly. What trace tools specifically are you talking about?

Each bitcoin mixing services has sort of different methods, but the concept is the same. Try reading about ChipMixer if you wanted more information from the mixers themselves: https://chipmixer.com/faq

bitcoinuserszz

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Hi. Im curious about bitcoin and how it works. If a person sends around 1 BTC in a tumbler, is it easy to track the transaction? I mean, how much people do not send around just 1 BTC every hour. Is it easy to track smaller transactions? Or easier to track larger transactions? Lets say that 10,000 people send around around 1 BTC per hour. How would these trace tools know which BTC transaction belongs to who?

Topic: Bitcoin mixer and tumbler - page 2. (Read 1005 times)